Caesars buys stake in Horseshoe Baltimore to own 76% as Maryland sports betting nears

Horseshoe was able to reverse declining gross gaming revenue in July this year, reporting revenue of $19.34 million, 22.4% up from July 2020, and similar to $19.38 million won on July 2019.

2021-08-27

United States

Reading time 1:28 min

The casino entertainment giant hasn’t revealed the financial terms of the deal announced Thursday. The venue, opened seven years ago, is a $442 million casino with 122,000-square-foot gaming floor. It is expected to see a further recovery in the months ahead, and is a potential beneficiary with the upcoming sports betting launch.

Caesars Entertainment has bought a minority interest from an unnamed partner in Maryland's Horseshoe Baltimore, the company announced on Thursday.

By having purchased this minority interest from one of its joint venture partners, as a result of the transaction Caesars now owns 76% of Horseshoe Baltimore.

The casino-entertainment giant hasn’t revealed the financial terms of the deal nor named the minority partner from which it acquired the interest.

Results of the property will be consolidated on Caesars’ financial statements, according to a press release. Other members of the ownership include Jack Entertainment; CVPR Gaming Holdings, LLC; STRON-MD Limited Partnership; and PRT TWO, LLC.

The company hasn’t commented on the future plans for the Horseshoe Baltimore casino, the second largest in Maryland with a 122,000-square-foot gaming floor.

The venue opened seven years ago, on August 26, 2014, with a $442 million price and is located along Russell Street on Baltimore’s south side.

After months of year-over-year gross gaming revenue declines, Horseshoe was able to reverse the situation in July this year, reporting gaming revenue of $19.34 million, 22.4% up from July 2020, and similar to $19.38 million won on July 2019.

As pent-up demand returns to Maryland, Horseshoe could see a further recovery in the months ahead, and is a potential beneficiary with the legalization of sports betting, with a strategic location near M&T Bank Stadium, where Orioles and Ravens play home games.

However, there is no firm launch timeline for retail or online sports betting in Maryland so far, with two weeks before kickoff of the upcoming NFL season. The Maryland Lottery and Gaming Commission is still to announce the opening date for sportsbook application submissions.

Despite regulations and licensing requirements being publicly available, it is expected a few weeks to pass for regulators to finalize each application. Maryland sports betting is likely not going to begin until the 2021 NFL season is already underway.